WASHINGTON - The Washington-based International Monetary Fund (IMF) on Wednesday approved the first batch of its share of the global bailout loan to cash-strapped Cyprus.

The IMF's Executive Board on Wednesday gave the green light to a three-year loan arrangement under the Extended Fund Facility (EFF) for Cyprus in the amount of 891 million special drawing right (SDR), or about $1.33 billion, in support of the country's economic adjustment program. The approval allows for the immediate disbursement of 74.25 million SDR, or about $110.7 million, the IMF said in a statement.

The EFF arrangement is part of a combined global financing package with Cyprus' European partners amounting to 10 billion euros ($12.9 billion) agreed in March.

"It is intended to stabilize the country's financial system, achieve fiscal sustainability, and support the recovery of economic activity to preserve the welfare of the population," said the IMF.

The IMF approval came after Cyprus received 2 billion euros of the 10-billion-euro bailout loan by the European Stability Mechanism (ESM) earlier this week.

Established in 1974, the EFF mechanism is typically three years in duration and aims at providing assistance to countries experiencing serious medium-term payments imbalances due to structural impediments in production and trade.